Most Gulf equities retreat on fears of prolonged conflict

Major Gulf equities ended lower on Thursday after U.S. President Donald Trump dimmed hopes for a swift end to the Middle East war.

In a prime-time address late on Wednesday, Trump said the U.S. would continue to strike Iran over the next two to three weeks and was close to achieving its main strategic objectives in the conflict.

Dubai’s main share index dropped 0.6%, dragged down by a 2.5% slide in toll operator Salik .

In Abu Dhabi, the index lost 0.7%, hit by a 4.2% decline in First Abu Dhabi Bank .

Gulf stock markets remain volatile as investor sentiment shifts with changing geopolitical signals, said George Pavel, general manager at Naga.com Middle East. Mixed messages from Trump added uncertainty, driving risk aversion and short-term market swings, he continued.

The Qatari index fell 0.4%, with Qatar Gas Transport declining 1.9%.

Threats to maritime traffic have increased as the conflict has intensified. On Wednesday, an oil tanker leased by QatarEnergy was struck by an Iranian cruise missile in Qatar’s waters, the country’s defence ministry said.

Saudi Arabia’s benchmark index gave up early gains to finish 0.1% lower, with ACWA Power Co losing 1.6%.

However, oil major Saudi Aramco added 0.2%.

Continued oil exports and elevated prices could offer some support, though existing constraints may limit the upside, Pavel said.

Oil prices climbed nearly 7% on Thursday, as fears of prolonged supply disruptions intensified.

Outside the Gulf, Egypt’s blue-chip index retreated 0.7%.